The Clayton Act:
A)was passed in 1985 over the objections of then President Reagan.
B)outlaws racial discrimination in the practice of business.
C)outlaws the ownership of stock by the U.S. government unless it is in public enterprises.
D)outlaws price discrimination unless based on cost differences.

Question

Quizplus · Accepted Answer

The Clayton Act, passed in 1914, outlaws price discrimination unless based on cost differences. This means that companies cannot charge different prices to different customers unless it can be justified by cost differences. Option A is incorrect as the act was passed much earlier than 1985. Option B is incorrect as there is a separate legislation (Civil Rights Act of 1964) that outlaws racial discrimination. Option C is incorrect as there is no such provision in the Clayton Act.